{"id":324311,"date":"2025-12-19T08:45:14","date_gmt":"2025-12-19T08:45:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/324311\/"},"modified":"2025-12-19T08:45:14","modified_gmt":"2025-12-19T08:45:14","slug":"public-debt-restructuring-ukraine-exchanges-gdp-linked-bonds","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/324311\/","title":{"rendered":"Public debt restructuring: Ukraine exchanges GDP-linked bonds"},"content":{"rendered":"<p>Ukraine has carried out an exchange of GDP warrants issued in 2015, with a total value of USD 2.6 billion, for conventional debt securities due 2030, 2032, and 2034.<\/p>\n<p>As reported by Ukrinform, this was announced by the <a href=\"https:\/\/mof.gov.ua\/uk\/news\/ukraine_announces_successful_restructuring_of_gdp-linked_warrants_saving_government_billions_of_dollars_in_post-war_period-5496\" rel=\"nofollow noopener\" target=\"_blank\">Ministry of Finance of Ukraine<\/a>.<\/p>\n<p>\u201cUkraine has\u00a0announced\u00a0that holders of outstanding GDP-linked Securities (\u201cWarrants\u201d), totalling USD 2.6 billion, have participated in the exchange offer and voted in favour of the proposed extraordinary resolution resulting in the full exchange of the Warrants into conventional debt securities of Ukraine,\u201d the statement said.<\/p>\n<p>The Ministry of Finance described the removal from circulation of the GDP warrants issued in 2015 as part of a prior sovereign debt restructuring caused by Russia\u2019s annexation of Crimea and invasion of Donbas as \u201ca substantial step\u201d toward strengthening Ukraine\u2019s debt sustainability and fiscal predictability.<\/p>\n<p>It is noted that following comprehensive negotiations with GDP warrant holders, 99.06% of the holders have endorsed the restructuring deal, surpassing the required 75% threshold. This means that Ukraine will convert almost the entire outstanding nominal amount of GDP warrants into a new class of C notes due 2032 in the amount of USD 3.497 billion (with a small portion converted into class B notes due 2030 and 2034 in the amount of USD 34 million).<\/p>\n<p>As part of the transaction, Ukraine will also cancel GDP warrants worth USD 604 million that are held by the state. Thus, Ukraine will completely remove this instrument from circulation.<\/p>\n<p>\u201cThis restructuring will allow Ukraine to save billions of dollars of potential payouts during post-war recovery. Converting the warrants into standard fixed-income bonds with aggregation brings predictability and reduces long-term volatility for public finances. We are retiring a toxic instrument that has become a serious fiscal risk for Ukraine and could have undermined our recovery and reconstruction,\u201d commented Ukraine\u2019s Minister of Finance Serhii Marchenko.<\/p>\n<p>The ministry clarified that the restructuring process has now moved to the settlement stage, which is expected to be completed by the end of the year.<\/p>\n<p>Read also: <a href=\"https:\/\/www.ukrinform.net\/rubric-economy\/4047974-marchenko-outlines-ukraines-financial-needs-for-20262027-during-washington-visit.html\" target=\"_blank\" rel=\"nofollow noopener\">Marchenko outlines Ukraine\u2019s financial needs for 2026\u20132027 during Washington visit<\/a><\/p>\n<p>As previously reported, according to the Ministry of Finance\u2019s estimates, total payments on GDP warrants in 2025-2041 could have amounted to between USD 6 billion and USD 20 billion, as after 2025 the payments are unlimited and linked to annual real GDP growth, without protection against the risk of economic downturns.<\/p>\n<p>Photo: Unsplash<\/p>\n","protected":false},"excerpt":{"rendered":"Ukraine has carried out an exchange of GDP warrants issued in 2015, with a total value of USD&hellip;\n","protected":false},"author":2,"featured_media":324312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-324311","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/324311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=324311"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/324311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/324312"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=324311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=324311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=324311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}